TN-Integration and Competitiveness DPL

closed

This Integration and Competitiveness Development Policy Loan (ICL) for Tunisia, supports the key strategic elements of Tunisia's 11th National Development Plan (2007-11) aims concerns to strengthen growth and ensure that this growth is translated into employment. It is also a cornerstone of the World Bank's program in Tunisia as outlined in the Country Assistance Strategy (FY05-08) and the Country Assistance Strategy Progress Report (2007) that set out an indicative program for FY09-10. This operation is also expected to be a major component of the new Country Partnership Strategy (FYI0-13). The main thrust of the program is to continue growth-enhancing reforms anchored around a deeper integration of Tunisia to the global economy. More urgently, the ICL will assist the Government in responding to the global financial crisis which is beginning to expose Tunisia's inherent macroeconomic vulnerability to growth in Europe. The immediate objective of the Government is therefore to accelerate reforms, send a strong signal to investors and mitigate recession contagion risks in the coming years. The global financial crisis and economic downturn will no doubt drive policy changes in Tunisia's main competitors for direct foreign investment and trade. Tunisia has decided to respond by accelerating reforms to maintain its competitiveness.